Lawmakers push expanded tax credit for forest biomass

By Marc Heller | 02/06/2026 06:29 AM EST

Bipartisan legislation would extend a carbon-capture credit to residue from wildfire mitigation.

Sen. Tim Sheehy (R-Mont.) at the Capitol.

Sen. Tim Sheehy (R-Mont.) is sponsoring the “Carbon Resource Innovation Act." Francis Chung/POLITICO

A bipartisan pair of lawmakers wants to extend a carbon-capture tax credit to some of the material that’s left over from forest-thinning projects, potentially aiding the fight against wildfires.

Legislation introduced Thursday by Sens. Tim Sheehy (R-Mont.) and Maria Cantwell (D-Wash.) would expand the credit in Section 45Q of the tax code to apply to products made from forest residue, including biochar, a carbon-rich material used as a soil additive.

The “Carbon Resource Innovation Act” is one of multiple proposals in Congress to attach the tax credit to agricultural and forest products that otherwise might go to waste. The materials store carbon that would be released into atmosphere if burned or allowed to decay on the ground.

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Scientists praise biochar in particular, hailed by the Agriculture Department’s Climate Hubs program for its soil benefits and other applications.

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